Jeep grand cherokee lost power in 4 wheel drive and made loud sound like gear stripping , shifted to 2 wheel drive got power back but still makes noise.

SOURCE: How to shift a 1998 jeep grand cherokee into 4 wheel drive

Four low is almost never used. I use it on very steep rocky or muddy trails in the woods or to pull someone out of mud or a ditch. Though some will shift standing still it is best do do this while rolling. Four high can be shifted at low speeds of 2 to about 35mph (higher also but not really good idea) Low can only be shifted between 2 to 10mph. If you find yourself stuck and unable to shift because you aren't rolling you can also turn the engine off, engage the transfer case and re-start. That avoids having the gears clashing together. Best rule is if it begins to grind, don't force it.

SOURCE: Jeep Quadratrack does not shift into 4 wheel drive

the quad trac is an alltime 4wheel drive system. it does have a control module that helps transfer the power from front to rear. if it is a 2008 it should be under warranty and you can have it checked out for proper operation

SOURCE: 1998 Jeep Cherokee Sport 4 wheel drive

I also have a 1998 jeep cherokee sport, i was having the same issues so i asked my uncle who is a mechanic.. he told me since the jeep automatically locks the hubs when you put it in 4 wheel drive, sometimes the hub locks get stuck trying to unlock, to solve this when you switch back to 2 wheel drive, reverse like 10 - 15 feet, the wheels spinning the opposite way help unlock the hubs, since i started doing this as soon as i reverse i feel the 4 wheel drive unengage and have not had a problem with it since, give it a try and see if that fixes your problem

SOURCE: 2000 Jeep Cherokee Gear Grinding & 4WD Whine sound

Give a try by change your transmission/filters and Transfer case oil.

SOURCE: 98 cherokee transfer case comes out of 4 wheel slow

i have a 1998 jeep cherokee that is stuck into 4 wheele drive how would i get it out of it